Australia's Chemical Industry to be Hurt by Carbon Tax (update)

3:12 AM MDT | July 13, 2011 | Alex Scott

(update with comment from Moody's) Julia Gillard, Australia’s prime minister, disclosed plans over the weekend to tax the country’s 500 largest emitters of carbon dioxide (CO2), including chemical and plastics producers, to the tune of A$23 ($25)/m.t. of CO2. The proposed system would run for a period without any trading of permits, after which time the set price would be replaced by an emissions trading scheme featuring a market price. The scheme is due to start up on July 1, 2012. According to the proposals, chemical and plastics...